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Thursday, June 20, 2024

Finance Ministry proposes cutting excise, value added taxes on fuels

The Saigon Times

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HCMC – The Ministry of Finance has proposed reducing the excise and value added taxes on fuels amid rising fuel prices.

According to the ministry, the proposal is aimed at reducing fuel prices, supporting local residents and aiding enterprises to recover after the fourth Covid wave, the local media reported.

The ministry also proposed lowering the environmental protection tax on gasoline, oil and lubricant to the lowest levels until December 31 this year. Accordingly, the tax on gasoline should be cut by VND1,000 per liter and that on oil and lubricant by VND700 per liter or kilogram.

If a resolution on the tax cut is approved in July and takes effect on August 1, the country’s State budget revenue would fall by some VND20.3 trillion this year.

Moreover, to diversify the fuel import sources and reduce the fuel import costs, the Ministry of Finance also suggested reducing the import tax on gasoline from 20% to 12%.

According to the Vietnam Petroleum Association, a liter of RON 95-III gasoline is currently subject to nearly VND10,000 in  taxes and VND11,000 in fees, which are so high. Therefore, the proposal of cutting the excise and value added taxes on fuels has won the support from economists.

However, the decision to reduce the taxes must be made by the National Assembly and the Government must wait until the National Assembly’s sitting in October to submit the proposal, said Dr Nguyen Ngoc Tu, a lecturer of the Hanoi University of Business and Technology.

Meanwhile, fuels are used in multiple sectors. The continuous increase in the fuel prices has sent the prices of many goods and services rising, making life difficult for local residents and businesses.

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